On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit andloss ratios and capital balances on this date were as follows:L 25%2,500,000.00C 35%5,400,000.00M 40% 3,700,000.00Total11,600,000.00The partnership has liabilities amounting to P 4,400,000, including a loan from C in theamount of P600,000.Cash on hand before starting the liquidationprocess is P 800,000.Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of thenon-cash assets were sold at a loss of P 4,200,000.How much cash will be distributed to the partners?

In the partnership there is fixed exchange ratio between the partners and profit or loss is shared…

Answered: 2,500,000.00 5,400,000.00 3,700,000.00…

Business

Accounting

2,500,000.00 5,400,000.00 3,700,000.00 11,600,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and
loss ratios and capital balances on this date were as follows:
L 25%
2,500,000.00
C 35%
5,400,000.00
M 40% 3,700,000.00
Total
11,600,000.00
The partnership has liabilities amounting to P 4,400,000, including a loan from C in the
amount of P600,000.
Cash on hand before starting the liquidation
process is P 800,000.
Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the
non-cash assets were sold at a loss of P 4,200,000.
How much cash will be distributed to the partners?

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